Q2 2026 Boise Cascade Co Earnings Call Transcript
Key Points
- Consolidated Q2 sales increased 5% year-over-year to $1.8 billion, with net income and EPS of $57.3 million and $1.63 per share, both higher than the prior-year quarter when excluding gains on asset sales.
- Expanded distribution partnership with James Hardie to become the sole nationwide distributor for its full product portfolio, positioning Boise Cascade for significant long-term growth and market share gains.
- Wood Products segment EBITDA increased to $52.4 million from $37.3 million in the prior-year quarter, driven by higher plywood prices and volumes and lower per-unit OSB costs.
- Plywood net sales price rose 15% year-over-year to $393 per thousand, supported by reduced imports and new Section 301 tariffs that may further benefit pricing.
- Strong capital allocation with $108 million in share repurchases in the first half of 2026 and a 5% dividend increase, reflecting confidence in the balance sheet and cash generation.
- EWP order file is approximately 3x higher than the same time last year, supporting a successful 3% price increase implementation.
- Integrated manufacturing-distribution model provides flexibility to shift veneer between plywood and EWP production, optimizing capacity and responding to market conditions.
- Third-quarter BMD EBITDA guidance is significantly lower at $53-$68 million, impacted by supplier transition activities and softer end-market demand.
- BMD EBITDA margin declined 70 basis points year-over-year to 5%, due to lower gross margins, higher selling and distribution costs, and a prior-year asset sale gain.
- EWP volumes declined 2% year-over-year in Q2, with pricing down 7% for I-joists and 4% for LVL, reflecting competitive pressures.
- The James Hardie transition will take multiple quarters to fully implement, with near-term revenue pressure in decking, siding, and trim as inventory is wound down.
- Homebuilding demand remains challenged by geopolitical uncertainty, volatile mortgage rates, and affordability issues, leading to cautious builder behavior and a slowing market.
- Higher fuel and outbound delivery costs increased selling and distribution expenses by $10.8 million year-over-year, with only partial pass-through to customers.
- Third-quarter Wood Products EBITDA guidance is wide at $22-$57 million, with expected mid-single-digit sequential volume declines due to pull-forward effects and channel de-stocking.
Good morning. My name is Dave and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Boise Cascade's second-quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Chris Forrey, Senior Vice President, Finance and Investor Relations. Mr. Forrey, you may begin your conference.
Good morning, everyone. I would like to welcome you to Boise Cascade second-quarter 2026 earnings call and business update. Joining me on today's call are Jeff Strom, our CEO; Kelly Hibbs, our CFO; Jo Barney, Leader of our Building Materials Distribution operations; and Troy Little, Leader of our Wood Products operations.
Turning to slide 2, this call will contain forward-looking statements. Please review the warning statements in our press release, on the presentation slides, and in our filings with the SEC regarding the risks associated with
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